BILL NUMBER: AB 1659	CHAPTERED  10/10/99

	CHAPTER   881
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	AMENDED IN SENATE   SEPTEMBER 8, 1999
	AMENDED IN SENATE   JUNE 17, 1999
	AMENDED IN ASSEMBLY   APRIL 28, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Committee on Human Services (Aroner (Chair), Ashburn
(Vice Chair), Ducheny, Shelley, and Strom-Martin)

                        MARCH 11, 1999

   An act to amend Sections 7911 and 7911.1 of the Family Code, to
amend Sections 1522, 1569.17, and 1596.871 of the Health and Safety
Code, and to amend Sections 361.21, 727.1, and 11466.21 of the
Welfare and Institutions Code, relating to community care, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1659, Committee on Human Services.  Care facilities.
   Existing law requires a county to obtain an assessment and
placement recommendation by a county multidisciplinary team, as
defined, prior to placement of a child in an out-of-state group home
facility.
   This bill would require participants to have knowledge or
experience in the prevention, identification, and treatment of child
abuse and neglect cases, and to be qualified to recommend a broad
range of services related to child abuse and neglect.
   Existing law contains fingerprint requirements for foster family
homes and operators and employees of community care facilities.
   This bill would make various changes in these fingerprint
requirements, as well as related criminal background and licensure
requirements, including a requirement that applicants and employees
submit a second set of fingerprints to the Department of Justice for
use by the Federal Bureau of Investigation for the purpose of
searching its criminal records information, and would provide for the
assessment of civil penalties for violation of this requirement.  It
would also modify the duties of the Department of Justice and the
State Department of Social Services in connection with the
implementation of these provisions.
   Because a violation of licensure provisions is a crime, the bill
would impose a state-mandated local program.
   Existing law requires that, unless the State Department of Social
Services grants an exemption, a license shall be denied for the
operation of a residential care facility for the elderly if specified
persons have been found to have committed a crime, with certain
exceptions.  Among the staff persons, volunteers, or employees whose
criminal convictions to which this provision applies are those who
have frequent and routine contact with clients.
   This bill would delete the reference to frequent and routine
contact, and thus only require that these individuals have contact
with clients.
   Because violation of provisions relating to residential care
facilities for the elderly is a crime, the bill would constitute a
state-mandated local program.
   Existing law, the California Child Day Care Act, requires that,
prior to issuing a license or special permit to operate or manage a
day care facility, the State Department of Social Services secure a
criminal record to determine whether the applicant or specified
employees has ever been convicted of specified crimes.
   Existing law contains certain exemptions from these provisions.
   This bill would revise the exemptions relating to certain
volunteers.
   Existing law prohibits a court from ordering the placement of
certain minors in an out-of-state group home unless the court finds,
in its order of placement, that specified conditions have been met.
   This bill would add to those conditions a requirement that
in-state facilities have been determined to be unavailable or
inadequate to meet the needs of the minor.
   Existing law requires the State Department of Social Services to
perform initial and continuing inspection of out-of-state group homes
in order to either certify that the out-of-state group home meets
all licensure standards required of group homes operated in
California or that the department has granted a waiver to a specific
licensing standard upon a finding that there exists no adverse impact
to health and safety.  Existing law further requires the department
to grant or deny an initial certification or a waiver by August 19,
1999.
   This bill would require the department to grant or deny an initial
certification or a waiver to an out-of-state group home facility
that has 6 or fewer California children placed by a county social
services agency or probation department by February 19, 2000, rather
than August 19, 1999.
   Existing law requires that if, upon inspection, the probation
officer of the county in which certain minors are adjudged wards of
the court determines that an out-of-state facility or program is not
licensed for the placement of minors by an agency of the state in
which the minor will be placed or operates under, and is inspected
pursuant to, standards comparable to the Board of Corrections for
similar facilities or programs, the probation officer may temporarily
remove the minor from the program or facility.
   This bill would also permit temporary removal from the facility or
program if it is determined that the facility or program has an
adverse impact on the health or safety of the child.
   Existing law establishes the Aid to Families with Dependent
Children-Foster Care (AFDC-FC) program, under which, through a
combination of federal, state, and local funds, payments are made to
foster care providers by each county on behalf of eligible children.

   Existing law provides that, except as specified, as a condition of
receiving an AFDC-FC rate on or after July 1, 1999, a group home
provider shall submit a copy of its most recent financial audit as a
component of any rate application.
   This bill would, instead, delay the date upon which this
requirement would apply until July 1, 2000.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   This bill would incorporate additional amendments to Section
1569.17 of the Health and Safety Code contained in SB 286, which
would become operative only if both bills are enacted and this bill
is enacted after SB 286, but this bill becomes operative before SB
286.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
  This bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 7911 of the Family Code is amended to read:
   7911.  The Legislature finds and declares all of the following:
   (a) The health and safety of California children placed by a
county social services agency or probation department out of state
pursuant to the provisions of the Interstate Compact on the Placement
of Children are a matter of statewide concern.
   (b) The Legislature therefore affirms its intention that the State
Department of Social Services has full authority to require an
assessment and placement recommendation by a county multidisciplinary
team prior to placement of a child in an out-of-state group home, to
investigate allegations of child abuse or neglect of minors so
placed, and to ensure that out-of-state group homes, accepting
California children, meet all California group home licensing
standards.
   (c) This section is declaratory of existing law with respect to
the Governor's designation of the State Department of Social Services
to act as the compact administrator and of that department to act as
the single state agency charged with supervision of public social
services under Section 10600 of the Welfare and Institutions Code.
  SEC. 2.  Section 7911.1 of the Family Code is amended to read:
   7911.1.  (a) Notwithstanding any other provision of law, the State
Department of Social Services or its designee shall investigate any
threat to the health and safety of children placed by a California
county social services agency or probation department in an
out-of-state group home pursuant to the provisions of the Interstate
Compact on the Placement of Children.  This authority shall include
the authority to interview children or staff in private or review
their file at the out-of-state facility or wherever the child or
files may be at the time of the investigation.  Notwithstanding any
other provisions of law, the State Department of Social Services or
its designee shall require certified out-of-state group homes to
comply with the reporting requirements applicable to group homes
licensed in California pursuant to Title 22 of the California Code of
Regulations for each child in care regardless of whether he or she
is a California placement, by submitting a copy of the required
reports to the Compact Administrator within regulatory timeframes.
The Compact Administrator within one business day of receiving a
serious events report shall verbally notify the appropriate placement
agencies and within five working days of receiving a written report
from the out-of-state group home, forward a copy of the written
report to the appropriate placement agencies.
   (b) Any contract, memorandum of understanding, or agreement
entered into pursuant to paragraph (b) of Article 5 of the Interstate
Compact on the Placement of Children regarding the placement of a
child out of state by a California county social services agency or
probation department shall include the language set forth in
subdivision (a).
   (c) The State Department of Social Services or its designee shall
perform initial and continuing inspection of out-of-state group homes
in order to either certify that the out-of-state group home meets
all licensure standards required of group homes operated in
California or that the department has granted a waiver to a specific
licensing standard upon a finding that there exists no adverse impact
to health and safety.  Any failure by an out-of-state group home
facility to make children or staff available as required by
subdivision (a) for a private interview or make files available for
review shall be grounds to deny or discontinue the certification.
The State Department of Social Services shall grant or deny an
initial certification or a waiver under this subdivision to an
out-of-state group home facility that has more than six California
children placed by a county social services agency or probation
department by August 19, 1999.  The department shall grant or deny an
initial certification or a waiver under this subdivision to an
out-of-state group home facility that has six or fewer California
children placed by a county social services agency or probation
department by February 19, 2000.  Certifications made pursuant to
this subdivision shall be reviewed annually.
   (d) Within six months of the effective date of this section, a
county shall be required to obtain an assessment and placement
recommendation by a county multidisciplinary team for each child in
an out-of-state group home facility.  On or after March 1, 1999, a
county shall be required to obtain an assessment and placement
recommendation by a county multidisciplinary team prior to placement
of a child in an out-of-state group home facility.
   (e) Any failure by an out-of-state group home to obtain or
maintain its certification as required by subdivision (c) shall
preclude the use of any public funds, whether county, state, or
federal, in the payment for the placement of any child in that
out-of-state group home, pursuant to the Interstate Compact on the
Placement of Children.
   (f) (1) A multidisciplinary team shall consist of participating
members from county social services, county mental health, county
probation, county superintendents of schools, and other members as
determined by the county.
   (2) Participants shall have knowledge or experience in the
prevention, identification, and treatment of child abuse and neglect
cases, and shall be qualified to recommend a broad range of services
related to child abuse or neglect.
   (g) (1) The department may deny, suspend, or discontinue the
certification of the out-of-state group home if the department makes
a finding that the group home is not operating in compliance with the
requirements of subdivision (c).
   (2) Any judicial proceeding to contest the department's
determination as to the status of the out-of-state group home
certificate shall be held in California pursuant to Section 1085 of
the Code of Civil Procedure.
   (h) This section shall not impact placements made pursuant to
Chapter 26.5 (commencing with Section 7570) of Division 7 of Title 1
of the Government Code relating to seriously emotionally disturbed
children.
   (i) Only an out-of-state group home authorized by the Compact
Administrator to receive state funds for the placement by a county
social services agency or probation department of any child in that
out-of-state group home from the effective date of this section shall
be eligible for public funds pending the department's certification
under this section.
  SEC. 3.  Section 1522 of the Health and Safety Code is amended to
read:
   1522.  The Legislature recognizes the need to generate timely and
accurate positive fingerprint identification of applicants as a
condition of issuing licenses, permits, or certificates of approval
for persons to operate or provide direct care services in a community
care facility, foster family home, or a certified family home of a
licensed foster family agency. Therefore, the Legislature supports
the use of the fingerprint live-scan technology, as identified in the
long-range plan of the Department of Justice for fully automating
the processing of fingerprints and other data by the year 1999,
otherwise known as the California Crime Information Intelligence
System (CAL-CII), to be used for applicant fingerprints.  It is the
intent of the Legislature in enacting this section to require the
fingerprints of those individuals whose contact with community care
clients may pose a risk to the clients' health and safety.
   (a) Before issuing a license or special permit to any person or
persons to operate or manage a community care facility, the State
Department of Social Services shall secure from an appropriate law
enforcement agency a criminal record to determine whether the
applicant or any other person specified in subdivision (b) has ever
been convicted of a crime other than a minor traffic violation or
arrested for any crime specified in Section 290 of the Penal Code,
for violating Section 245 or 273.5, subdivision (b) of Section 273a
or, prior to January 1, 1994, paragraph (2) of Section 273a of the
Penal Code, or for any crime for which the department cannot grant an
exemption if the person was convicted and the person has not been
exonerated.  That criminal history information shall include the full
criminal record, of any of those persons, and subsequent arrest
information pursuant to Section 11105.2 of the Penal Code.  No fee
shall be charged by the Department of Justice or the State Department
of Social Services for the fingerprinting of an applicant for a
license or special permit to operate a facility providing nonmedical
board, room, and care for six or less children or for obtaining a
criminal record of the applicant pursuant to this section.  The
following shall apply to the criminal record information:
   (1) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), has been
convicted of a crime other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (g).
   (2) If the State Department of Social Services finds that the
applicant, or any person specified in subdivision (b) is awaiting
trial for a crime other than a minor traffic violation, the State
Department of Social Services shall cease processing the application
until the conclusion of the trial.
   (3) If no criminal record information has been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.
   (4) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license may be revoked, unless
the director grants an exemption pursuant to subdivision (g).
   (5) An applicant and any other person specified in subdivision (b)
shall submit a second set of fingerprints to the Department of
Justice for the purpose of searching the criminal records of the
Federal Bureau of Investigation, in addition to the criminal records
search required by this subdivision.  If an applicant and all other
persons described in subdivision (b) meet all of the conditions for
licensure, except receipt of the Federal Bureau of Investigation's
criminal history information for the applicant or any of the persons
described in subdivision (b), the department may issue a license if
the applicant and each person described in subdivision (b) has signed
and submitted a statement that he or she has never been convicted of
a crime in the United States, other than a traffic infraction, as
defined in paragraph (1) of subdivision (a) of Section 42001 of the
Vehicle Code.  If, after licensure, the department determines that
the licensee or a person specified in subdivision (b) has a criminal
record, the license may be revoked pursuant to Section 1550.  The
department may also suspend the license pending an administrative
hearing pursuant to Section 1550.5.
   (b) In addition to the applicant, this section shall be applicable
to criminal convictions of the following persons:
   (1) Adults responsible for administration or direct supervision of
staff.
   (2) Any person, other than a client, residing in the facility.
   (3) Any person who provides client assistance in dressing,
grooming, bathing, or personal hygiene.  Any nurse assistant or home
health aide meeting the requirements of Section 1338.5 or 1736.6,
respectively, who is not employed, retained, or contracted by the
licensee, and who has been certified or recertified on or after July
1, 1998, shall be deemed to meet the criminal record clearance
requirements of this section.  A certified nurse assistant and
certified home health aide who will be providing client assistance
and who falls under this exemption shall provide one copy of his or
her current certification, prior to providing care, to the adult
community care facility.  The facility shall maintain the copy of the
certification on file as long as care is being provided by the
certified nurse assistant or certified home health aide at the
facility.  Nothing in this paragraph restricts the right of the
department to exclude a certified nurse assistant or certified home
health aide from a licensed community care facility pursuant to
Section 1558.
   (4) (A) Any staff person, volunteer, or employee who has contact
with the clients.  A volunteer shall be exempt from the requirements
of this subdivision if the volunteer is a relative of a client in
care at the facility and is not used to replace or supplement staff
in providing direct care and supervision of clients.
   (B) A volunteer in an adult residential facility shall be exempt
from the requirements of this subdivision if he or she is a relative,
significant other, or close friend of a client receiving care in the
facility and the volunteer is not used to replace or supplant staff
in providing direct care and supervision of clients.
   (5) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer or other person serving in
like capacity.
   (6) Additional officers of the governing body of the applicant, or
other persons with a financial interest in the applicant, as
determined necessary by the department by regulation.  The criteria
used in the development of these regulations shall be based on the
person's capability to exercise substantial influence over the
operation of the facility.
   (c) (1) Subsequent to initial licensure, any person specified in
subdivision (b) and not exempted from fingerprinting shall, as a
condition to employment, residence, or presence in a community care
facility, be fingerprinted and sign a declaration under penalty of
perjury regarding any prior criminal convictions.  The licensee shall
submit these fingerprints to the Department of Justice, along with a
second set of fingerprints for the purpose of searching the records
of the Federal Bureau of Investigation, or to comply with paragraph
(1) of subdivision (h), prior to the person's employment, residence,
or initial presence in the community care facility. These
fingerprints shall be on a card provided by the State Department of
Social Services for the purpose of obtaining a permanent set of
fingerprints, and shall be submitted to the Department of Justice by
the licensee or sent by electronic transmission in a manner approved
by the State Department of Social Services.  A licensee's failure to
submit fingerprints to the Department of Justice or to comply with
paragraph (1) of subdivision (h), as required in this section, shall
result in the citation of a deficiency and the immediate assessment
of civil penalties in the amount of one hundred dollars ($100) per
violation.  The department may assess civil penalties for continued
violations as permitted by Section 1548.  The fingerprints shall then
be submitted to the State Department of Social Services for
processing.  Upon request of the licensee, who shall enclose a
self-addressed stamped postcard for this purpose, the Department of
Justice shall verify receipt of the fingerprints.
   (2) Within 14 calendar days of the receipt of the fingerprints,
the Department of Justice shall notify the State Department of Social
Services of the criminal record information, as provided for in
subdivision (a).  If no criminal record information has been
recorded, the Department of Justice shall provide the licensee and
the State Department of Social Services with a statement of that fact
within 14 calendar days of receipt of the fingerprints.
Documentation of the individual's clearance or exemption shall be
maintained by the licensee and be available for inspection.  If new
fingerprints are required for processing, the Department of Justice
shall, within 14 calendar days from the date of receipt of the
fingerprints, notify the licensee that the fingerprints were
illegible.  When live-scan technology is operational, as defined in
Section 1522.04, the Department of Justice shall notify the State
Department of Social Services, as required by that section, and the
State Department of Social Services shall also notify the licensee by
mail, within 14 days of electronic transmission of the fingerprints
to the Department of Justice, if the person has no criminal history
recorded.  A violation of the regulations adopted pursuant to Section
1522.04 shall result in the citation of a deficiency and an
immediate assessment of civil penalties in the amount of one hundred
dollars ($100) per violation.  The department may assess civil
penalties for continued violations as permitted by Section 1548.
   (3) Except for persons specified in paragraph (2) of subdivision
(b), the licensee shall endeavor to ascertain the previous employment
history of persons required to be fingerprinted under this
subdivision.  If it is determined by the State Department of Social
Services, on the basis of the fingerprints submitted to the
Department of Justice, that the person has been convicted of, or is
awaiting trial for, a sex offense against a minor, or has been
convicted for an offense specified in Section 243.4, 273a, or 273d or
subdivision (a) or (b) of Section 368 of the Penal Code, or a
felony, the State Department of Social Services shall notify the
licensee to act immediately to terminate the person's employment,
remove the person from the community care facility, or bar the person
from entering the community care facility.  The State Department of
Social Services may subsequently grant an exemption pursuant to
subdivision (g).  If the conviction or arrest was for another crime,
except a minor traffic violation, the licensee shall, upon
notification by the State Department of Social Services, act
immediately to either (1) terminate the person's employment, remove
the person from the community care facility, or bar the person from
entering the community care facility; or (2) seek an exemption
pursuant to subdivision (g).  The State Department of Social Services
shall determine if the person shall be allowed to remain in the
facility until a decision on the exemption is rendered.  A licensee's
failure to comply with the department's prohibition of employment,
contact with clients, or presence in the facility as required by this
paragraph shall be grounds for disciplining the licensee pursuant to
Section 1550.
   (4) The department may issue an exemption on its own motion
pursuant to subdivision (g) if the person's criminal history
indicates that the person is of good character based on the age,
seriousness, and frequency of the conviction or convictions.  The
department, in consultation with interested parties, shall develop
regulation to establish the criteria to grant an exemption pursuant
to this paragraph.
   (5) Concurrently with notifying the licensee pursuant to paragraph
(3), the department shall notify the affected individual of his or
her right to seek an exemption pursuant to subdivision (g).  The
individual may seek an exemption only if the licensee terminates the
person's employment or removes the person from the facility after
receiving notice from the department pursuant to paragraph (3).
   (d) (1) Before issuing a license, special permit, or certificate
of approval to any person or persons to operate or manage a foster
family home or certified family home as described in Section 1506,
the State Department of Social Services or other approving authority
shall secure from an appropriate law enforcement agency a criminal
record to determine whether the applicant or any person specified in
subdivision (b) has ever been convicted of a crime other than a minor
traffic violation or arrested for any crime specified in Section 290
of the Penal Code or arrested for violating Section 245 or 273.5,
subdivision (b) of Section 273a or, prior to January 1, 1994,
paragraph (2) of Section 273a of the Penal Code, or for any crime for
which the department cannot grant an exemption if the person was
convicted and the person has not been exonerated.  That criminal
history information shall include the full criminal record, if any,
of those persons.  No fee shall be charged by the Department of
Justice or the State Department of Social Services for the
fingerprinting of an applicant for a license, special permit, or
certificate of approval described in this subdivision.  The record,
if any, shall be taken into consideration when evaluating a
prospective applicant.  The following shall apply to the criminal
record information:
   (A) If the applicant or other persons specified in subdivision (b)
have convictions that would make the applicant's home unfit as a
foster family home or a certified family home, the license, special
permit, or certificate of approval shall be denied.
   (B) If the State Department of Social Services finds that the
applicant, or any person specified in subdivision (b) is awaiting
trial for a crime other than a minor traffic violation, the State
Department of Social Services or other approving authority shall
cease processing the application until the conclusion of the trial.
   (C) For the purposes of this subdivision, a criminal record
clearance provided under Section 8712 of the Family Code may be used
by the department or other approving agency.
   (D) An applicant for a foster family home license or for
certification as a family home, and any other person specified in
subdivision (b), shall submit a set of fingerprints to the Department
of Justice for the purpose of searching the criminal records of the
Federal Bureau of Investigation, in addition to the criminal records
search required by subdivision (a).  If an applicant meets all other
conditions for licensure, except receipt of the Federal Bureau of
Investigation's criminal history information for the applicant and
all persons described in subdivision (b), the department may issue a
license, or the foster family agency may issue a certificate of
approval, if the applicant, and each person described in subdivision
(b), has signed and submitted a statement that he or she has never
been convicted of a crime in the United States, other than a traffic
infraction, as defined in paragraph (1) of subdivision (a) of Section
42001 of the Vehicle Code.  If, after licensure or certification,
the department determines that the licensee, certified foster parent,
or any person specified in subdivision (b) has a criminal record,
the license may be revoked pursuant to Section 1550 and the
certificate of approval revoked pursuant to subdivision (b) of
Section 1534.  The department may also suspend the license pending an
administrative hearing pursuant to Section 1550.5.
   (2) Any person specified in this subdivision shall, as a part of
the application, be fingerprinted and sign a declaration under
penalty of perjury regarding any prior criminal convictions or
arrests for any crime against a child, spousal or cohabitant abuse
or, any crime for which the department cannot grant an exemption if
the person was convicted and shall submit these fingerprints to the
licensing agency or other approving authority.
   (3) (A) The foster family agency shall obtain fingerprints from
certified home applicants and from persons specified in subdivision
(b) and shall submit them directly to the Department of Justice or
send them by electronic transmission in a manner approved by the
State Department of Social Services.  A foster family home licensee
or foster family agency shall submit these fingerprints to the
Department of Justice, along with a second set of fingerprints for
the purpose of searching the records of the Federal Bureau of
Investigation or to comply with paragraph (1) of subdivision (b)
prior to the person's employment, residence, or initial presence.  A
licensee's failure to submit fingerprints to the Department of
Justice, or comply with paragraph (1) of subdivision (h), as required
in this section, shall result in a citation of a deficiency, and the
immediate civil penalties of one hundred dollars ($100) per
violation.  The State Department of Social Services may assess
penalties for continued violations, as permitted by Section 1548.
The fingerprints shall then be submitted to the State Department of
Social Services for processing.
   (B) Upon request of the licensee, who shall enclose a
self-addressed envelope for this purpose, the Department of Justice
shall verify receipt of the fingerprints.  Within five working days
of the receipt of the criminal record or information regarding
criminal convictions from the Department of Justice, the department
shall notify the applicant of any criminal arrests or convictions.
If no arrests or convictions are recorded, the Department of Justice
shall provide the foster home licensee or the foster family agency
with a statement of that fact concurrent with providing the
information to the State Department of Social Services.
   (4) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), has been
convicted of a crime other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (g).
   (5) If the State Department of Social Services finds after
licensure or the granting of the certificate of approval that the
licensee, certified foster parent, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license or certificate of
approval may be revoked by the department or the foster family
agency, whichever is applicable, unless the director grants an
exemption pursuant to subdivision (g).  A licensee's failure to
comply with the department's prohibition of employment, contact with
clients, or presence in the facility as required by paragraph (3) of
subdivision (c) shall be grounds for disciplining the licensee
pursuant to Section 1550.
   (e) The State Department of Social Services shall not use a record
of arrest to deny, revoke, or terminate any application, license,
employment, or residence unless the department investigates the
incident and secures evidence, whether or not related to the incident
of arrest, that is admissible in an administrative hearing to
establish conduct by the person that may pose a risk to the health
and safety of any person who is or may become a client. The State
Department of Social Services is authorized to obtain any arrest or
conviction records or reports from any law enforcement agency as
necessary to the performance of its duties to inspect, license, and
investigate community care facilities and individuals associated with
a                                              community care
facility.
   (f) (1) For purposes of this section or any other provision of
this chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere.  Any action which the
State Department of Social Services is permitted to take following
the establishment of a conviction may be taken when the time for
appeal has elapsed, or the judgment of conviction has been affirmed
on appeal or when an order granting probation is made suspending the
imposition of sentence, notwithstanding a subsequent order pursuant
to Sections 1203.4 and 1203.4a of the Penal Code permitting the
person to withdraw his or her plea of guilty and to enter a plea of
not guilty, or setting aside the verdict of guilty, or dismissing the
accusation, information, or indictment.  For purposes of this
section or any other provision of this chapter, the record of a
conviction, or a copy thereof certified by the clerk of the court or
by a judge of the court in which the conviction occurred, shall be
conclusive evidence of the conviction.  For purposes of this section
or any other provision of this chapter, the arrest disposition report
certified by the Department of Justice, or documents admissible in a
criminal action pursuant to Section 969b of the Penal Code, shall be
prima facie evidence of the conviction, notwithstanding any other
provision of law prohibiting the admission of these documents in a
civil or administrative action.
   (2) For purposes of this section or any other provision of this
chapter, the department shall consider criminal convictions from
another state or federal court as if the criminal offense was
committed in this state.
   (g) (1) After review of the record, the director may grant an
exemption from disqualification for a license or special permit as
specified in paragraphs (1) and (4) of subdivision (a), or for a
license, special permit, or certificate of approval as specified in
paragraphs (4) and (5) of subdivision (d), or for employment,
residence, or presence in a community care facility as specified in
paragraphs (3), (4), and (5) of subdivision (c), if the director has
substantial and convincing evidence to support a reasonable belief
that the applicant and the person convicted of the crime, if other
than the applicant, are of such good character as to justify issuance
of the license or special permit or granting an exemption for
purposes of subdivision (c).  Except as otherwise provided in this
subdivision, no exemption shall be granted pursuant to this
subdivision if the conviction was for an offense specified in Section
220, 243.4, or 264.1, subdivision (a) of Section 273a or, prior to
January 1, 1994, paragraph (1) of Section 273a, Section 273d, 288, or
289, subdivision (a) of Section 290, or subdivision (a) or (b) of
Section 368 of the Penal Code, or was a conviction of another crime
against an individual specified in subdivision (c) of Section 667.5
of the Penal Code.  The director may grant an exemption if the
employee or prospective employee, who was convicted of a crime
against an individual prescribed in paragraph (1), (2), (7), or (8)
of subdivision (c) of Section 667.5 of the Penal Code, has been
rehabilitated as provided in Section 4852.03 of the Penal Code, has
maintained the conduct required in Section 4852.05 of the Penal Code
for at least 10 years, and has the recommendation of the district
attorney representing the employee's county of residence, or if the
employee or prospective employee has received a certificate of
rehabilitation pursuant to Chapter 3.5 (commencing with Section
4852.01) of Title 6 of Part 3 of the Penal Code.
   (2) The department shall not prohibit a person from being employed
or having contact with clients in a facility on the basis of a
denied criminal record exemption request or arrest information unless
the department complies with the requirements of Section 1558.
   (h) (1) For purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
records clearance, as defined in subdivision (a), from one facility
to another, as long as the criminal record clearance has been
processed through a state licensing district office, and is being
transferred to another state licensing district office.  The request
shall be in writing to the State Department of Social Services, and
shall include a copy of the person's driver's license or valid
identification card issued by the Department of Motor Vehicles, or a
valid photo identification issued by another state or the United
States government if the person is not a California resident.  Upon
request of the licensee, who shall enclose a self-addressed envelope
for this purpose, the State Department of Social Services shall
verify whether the individual has a clearance that can be
transferred.
   (2) The State Department of Social Services shall hold criminal
record clearances in its active files for a minimum of two years
after an employee is no longer employed at a licensed facility in
order for the criminal record clearance to be transferred.
   (i) The full criminal record obtained for purposes of this section
may be used by the department or by a licensed adoption agency as a
clearance required for adoption purposes.
   (j) If a licensee or facility is required by law to deny
employment or to terminate employment of any employee based on
written notification from the state department that the employee has
a prior criminal conviction or is determined unsuitable for
employment under Section 1558, the licensee or facility shall not
incur civil liability or unemployment insurance liability as a result
of that denial or termination.
   (k) (1) The Department of Justice shall coordinate with the State
Department of Social Services to establish and implement an automated
live-scan processing system for fingerprints in the district offices
of the Community Care Licensing Division of the State Department of
Social Services by July 1, 1999.  These live-scan processing units
shall be connected to the main system at the Department of Justice by
July 1, 1999, and shall become part of that department's pilot
project in accordance with its long-range plan.  The State Department
of Social Services may charge a fee for the costs of processing a
set of live-scan fingerprints.
   (2) The Department of Justice shall provide a report to the Senate
and Assembly fiscal committees, the Assembly Human Services
Committee, and to the Senate Health and Human Services Committee by
April 15, 1999, regarding the completion of backlogged criminal
record clearance requests for all facilities licensed by the State
Department of Social Services and the progress on implementing the
automated live-scan processing system in the two district offices
pursuant to paragraph (1).
   (l) Amendments to this section made in the 1999 portion of the
1999-2000 Regular Session shall be implemented commencing 60 days
after the effective date of the act amending this section in the 1999
portion of the 1999-2000 Regular Session, except that those
provisions for the submission of fingerprints for searching the
records of the Federal Bureau of Investigation shall be implemented
90 days after the effective date of that act.
  SEC. 4.  Section 1569.17 of the Health and Safety Code is amended
to read:
   1569.17.  The Legislature recognizes the need to generate timely
and accurate positive fingerprint identification of applicants as a
condition of issuing licenses, permits, or certificates of approval
for persons to operate or provide direct care services in a
residential care facility for the elderly.  The Legislature supports
the use of the fingerprint live-scan technology, as identified in the
long-range plan of the Department of Justice for fully automating
the processing of fingerprints and other data by the year 1999.  It
is the intent of the Legislature in enacting this section to require
the fingerprints of those individuals whose contact with clients of
residential care facilities for the elderly may pose a risk to the
clients' health and safety.
   (a) Before issuing a license to any person or persons to operate
or manage a residential care facility for the elderly, the department
shall secure from an appropriate law enforcement agency a criminal
record to determine whether the applicant or any other person
specified in subdivision (b) has ever been convicted of a crime other
than a minor traffic violation or arrested for any crime specified
in Section 290 of the Penal Code, for violating Section 245 or 273.5,
subdivision (b) of Section 273a or, prior to January 1, 1994,
paragraph (2) of Section 273a of the Penal Code, or for any crime for
which the department cannot grant an exemption if the person was
convicted and the person has been exonerated.  That criminal history
information shall include the full criminal record, if any, of those
persons, and subsequent arrest information pursuant to Section
11105.2 of the Penal Code.  The following shall apply to the criminal
record information:
   (1) If the State Department of Social Services finds that the
applicant or any other person specified in subdivision (b) has been
convicted of a crime, other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (f).
   (2) If the State Department of Social Services finds that the
applicant, or any person specified in subdivision (b) is awaiting
trial for a crime other than a minor traffic violation, the State
Department of Social Services shall cease processing the application
until the conclusion of the trial.
   (3) If no criminal record information has been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.
   (4) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license may be revoked, unless
the director grants an exemption pursuant to subdivision (f).
   (5) An applicant and any person specified in subdivision (b) shall
submit a second set of fingerprints to the Department of Justice,
for the purpose of searching the records of the Federal Bureau of
Investigation, in addition to the search required by subdivision (a).
  If an applicant meets all other conditions for licensure, except
receipt of the Federal Bureau of Investigation's criminal history
information for the applicant and persons listed in subdivision (b),
the department may issue a license if the applicant and each person
described by subdivision (b) has signed and submitted a statement
that he or she has never been convicted of a crime in the United
States, other than a traffic infraction as defined in paragraph (1)
of subdivision (a) of Section 42001 of the Vehicle Code.  If, after
licensure, the department determines that the licensee or person
specified in subdivision (b) has a criminal record, the license may
be revoked pursuant to Section 1569.50.  The department may also
suspend the license pending an administrative hearing pursuant to
Sections 1569.50 and 1569.51.
   (b) In addition to the applicant, the provisions of this section
shall be applicable to criminal convictions of the following persons:

   (1) Adults responsible for administration or direct supervision of
staff.
   (2) Any person, other than a client, residing in the facility.
   (3) Any person who provides client assistance in dressing,
grooming, bathing, or personal hygiene.  Any nurse assistant or home
health aide meeting the requirements of Section 1338.5 or 1736.6,
respectively, who is not employed, retained, or contracted by the
licensee, and who has been certified or recertified on or after July
1, 1998, shall be deemed to meet the criminal record clearance
requirements of this section.  A certified nurse assistant and
certified home health aide who will be providing client assistance
and who falls under this exemption shall provide one copy of his or
her current certification, prior to providing care, to the
residential care facility for the elderly.  The facility shall
maintain the copy of the certification on file as long as the care is
being provided by the certified nurse assistant or certified home
health aide at the facility.  Nothing in this paragraph restricts the
right of the department to exclude a certified nurse assistant or
certified home health aide from a licensed residential care facility
for the elderly pursuant to Section 1569.58.
   (4) (A) Any staff person, volunteer, or employee who has contact
with the clients.
   (B) A volunteer shall be exempt from the requirements of this
subdivision if he or she is a relative, significant other, or close
friend of a client receiving care in the facility and the volunteer
is not used to replace or supplement staff in providing direct care
and supervision of clients.
   (5) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer or other person serving in
like capacity.
   (6) Additional officers of the governing body of the applicant, or
other persons with a financial interest in the applicant, as
determined necessary by the department by regulation.  The criteria
used in the development of these regulations shall be based on the
person's capability to exercise substantial influence over the
operation of the facility.
   (c) (1) (A) Subsequent to initial licensure, any person specified
in subdivision (b) and not exempted from fingerprinting shall, as a
condition to employment, residence, or presence in a residential
facility for the elderly, be fingerprinted and sign a declaration
under penalty of perjury regarding any prior criminal convictions.
The licensee shall submit these fingerprints, along with a second set
of fingerprints for the purpose of searching the records of the
Federal Bureau of Investigation, to the Department of Justice, or to
comply with paragraph (1) of subdivision (g) prior to the person's
employment, residence, or initial presence in the residential care
facility for the elderly.
   (B) These fingerprints shall be on a card provided by the State
Department of Social Services for the purpose of obtaining a
permanent set of fingerprints and submitted to the Department of
Justice by the licensee or sent by electronic transmission in a
manner approved by the State Department of Social Services.  A
licensee's failure to submit fingerprints to the Department of
Justice, or to comply with paragraph (1) of subdivision (g), as
required in this section, shall result in the citation of a
deficiency and an immediate assessment of civil penalties in the
amount of one hundred dollars ($100) per violation.  The State
Department of Social Services may assess civil penalties for
continued violations as permitted by Section 1569.49.  The
fingerprints shall then be submitted to the State Department of
Social Services for processing.  Documentation of the individual's
clearance or exemption shall be maintained by the licensee and be
available for inspection.  When live-scan technology is operational,
as defined in Section 1522.04, the Department of Justice shall notify
the department, as required by that section, and notify the licensee
by mail within 14 days of electronic transmission of the
fingerprints to the Department of Justice, if the person has no
criminal record.  A violation of the regulations adopted pursuant to
Section 1522.04 shall result in the citation of a deficiency and an
immediate assessment of civil penalties in the amount of one hundred
dollars ($100) per violation.  The department may assess civil
penalties for continued violations as permitted by Section 1569.49.
   (2) Within 14 calendar days of the receipt of the fingerprints,
the Department of Justice shall notify the State Department of Social
Services of the criminal record information, as provided for in this
subdivision.  If no criminal record information has been recorded,
the Department of Justice shall provide the licensee and the State
Department of Social Services with a statement of that fact within 14
calendar days of receipt of the fingerprints. If new fingerprints
are required for processing, the Department of Justice shall, within
14 calendar days from the date of receipt of the fingerprints, notify
the licensee that the fingerprints were illegible.
   (3) Except for persons specified in paragraph (2) of subdivision
(b), the licensee shall endeavor to ascertain the previous employment
history of persons required to be fingerprinted under this
subdivision.  If it is determined by the State Department of Social
Services, on the basis of the fingerprints submitted to the
Department of Justice, that the person has been convicted of a sex
offense against a minor, an offense specified in Section 243.4, 273a,
or 273d, subdivision (a) or (b) of Section 368 of the Penal Code, or
a felony, the State Department of Social Services shall notify the
licensee in writing within 15 calendar days of the receipt of the
notification from the Department of Justice to act immediately to
terminate the person's employment, remove the person from the
residential care facility for the elderly, or bar the person from
entering the residential care facility for the elderly.  The State
Department of Social Services may subsequently grant an exemption
pursuant to subdivision (f).  If the conviction was for another
crime, except a minor traffic violation, the licensee shall, upon
notification by the State Department of Social Services, act
immediately to either (1) terminate the person's employment, remove
the person from the residential care facility for the elderly, or bar
the person from entering the residential care facility for the
elderly; or (2) seek an exemption pursuant to subdivision (f).  The
department shall determine if the person shall be allowed to remain
in the facility until a decision on the exemption is rendered by the
department.  A licensee's failure to comply with the department's
prohibition of employment, contact with clients, or presence in the
facility as required by this paragraph shall be grounds for
disciplining the licensee pursuant to Section 1569.50.
   (4) The department may issue an exemption on its own motion
pursuant to subdivision (f) if the person's criminal history
indicates that the person is of good character based on the age,
seriousness, and frequency of the conviction or convictions.  The
department, in consultation with interested parties, shall develop
regulations to establish the criteria to grant an exemption pursuant
to this paragraph.
   (5) Concurrently with notifying the licensee pursuant to paragraph
(4), the department shall notify the affected individual of his or
her right to seek an exemption pursuant to subdivision (f).  The
individual may seek an exemption only if the licensee terminates the
person's employment or removes the person from the facility after
receiving notice from the department pursuant to paragraph (4).
   (d) (1) For purposes of this section or any other provision of
this chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere.  Any action that the
department is permitted to take following the establishment of a
conviction may be taken when the time for appeal has elapsed, or the
judgment of conviction has been affirmed on appeal or when an order
granting probation is made suspending the imposition of the sentence,
notwithstanding a subsequent order pursuant to the provisions of
Sections 1203.4 and 1203.4a of the Penal Code permitting a person to
withdraw his or her plea of guilty and to enter a plea of not guilty,
or setting aside the verdict of guilty, or dismissing the
accusation, information, or indictment.  For purposes of this section
or any other provision of this chapter, the record of a conviction,
or a copy thereof certified by the clerk of the court or by a judge
of the court in which the conviction occurred, shall be conclusive
evidence of the conviction.  For purposes of this section or any
other provision of this chapter, the arrest disposition report
certified by the Department of Justice or documents admissible in a
criminal action pursuant to Section 969b of the Penal Code shall be
prima facie evidence of the conviction, notwithstanding any other
provision of law prohibiting the admission of these documents in a
civil or administrative action.
   (2) For purposes of this section or any other provision of this
chapter, the department shall consider criminal convictions from
another state or federal court as if the criminal offense was
committed in this state.
   (e) The State Department of Social Services shall not use a record
of arrest to deny, revoke, or terminate any application, license,
employment, or residence unless the department investigates the
incident and secures evidence, whether or not related to the incident
of arrest, that is admissible in an administrative hearing to
establish conduct by the person that may pose a risk to the health
and safety of any person who is or may become a client.  The State
Department of Social Services is authorized to obtain any arrest or
conviction records or reports from any law enforcement agency as
necessary to the performance of its duties to inspect, license, and
investigate community care facilities and individuals associated with
a community care facility.
   (f) (1) After review of the record, the director may grant an
exemption from disqualification for a license as specified in
paragraphs (1) and (4) of subdivision (a), or for employment,
residence, or presence in a residential care facility for the elderly
as specified in paragraphs (4), (5), and (6) of subdivision (c) if
the director has substantial and convincing evidence to support a
reasonable belief that the applicant and the person convicted of the
crime, if other than the applicant, are of such good character as to
justify issuance of the license or special permit or granting an
exemption for purposes of subdivision (c).  However, no exemption
shall be granted pursuant to this subdivision if the conviction was
for an offense specified in Section 220, 243.4, or 264.1, subdivision
(a) of Section 273a or, prior to January 1, 1994, paragraph (1) of
Section 273a, Section 273d, 288, or 289, subdivision (a) of Section
290, or subdivision (a) or (b) of Section 368 of the Penal Code, or
was a conviction of another crime against an individual specified in
subdivision (c) of Section 667.5 of the Penal Code.  The director
shall notify in writing the licensee or the applicant of his or her
decision within 60 days of receipt of all information from the
applicant and other sources determined necessary by the director for
the rendering of a decision pursuant to this subdivision.
   (2) The department shall not prohibit a person from being employed
or having contact with clients in a facility on the basis of a
denied criminal record exemption request or arrest information unless
the department complies with the requirements of Section 1569.58.
   (g) (1) For purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
records clearance, as defined in subdivision (a), from one facility
to another, as long as the criminal record clearance has been
processed through a state licensing district office, and is being
transferred to another state licensing district office.  The request
shall be submitted, in writing to the department, and shall include a
copy of the person's driver's license or valid identification card
issued by the Department of Motor Vehicles, or a valid photo
identification issued by another state or the United States
government if the person is not a California resident.  Upon request
of the licensee, who shall enclose a self-addressed stamped envelope
for this purpose, the department shall verify whether the individual
has a clearance that can be transferred.
   (2) The State Department of Social Services shall hold criminal
records clearances in its active files for a minimum of two years
after an employee is no longer employed at a licensed facility in
order for the criminal records clearances to be transferred under
this section.
   (h) If a licensee or facility is required by law to deny
employment or to terminate employment of any employee based on
written notification from the state department that the employee has
a prior criminal conviction or is determined unsuitable for
employment under Section 1569.58, the licensee or facility shall not
incur civil liability or unemployment insurance liability as a result
of that denial or termination.
   (i) Amendments to the provisions of this section made in the 1998
calendar year shall be implemented commencing 60 days after the
effective date of the act amending this section in the 1998 calendar
year, except those provisions for the submission of fingerprints for
searching the records of the Federal Bureau of Investigation, which
shall be implemented commencing January 1, 1999.
  SEC. 4.5.  Section 1569.17 of the Health and Safety Code is amended
to read:
   1569.17.  The Legislature recognizes the need to generate timely
and accurate positive fingerprint identification of applicants as a
condition of issuing licenses, permits, or certificates of approval
for persons to operate or provide direct care services in a
residential care facility for the elderly.  The Legislature supports
the use of the fingerprint live-scan technology, as identified in the
long-range plan of the Department of Justice for fully automating
the processing of fingerprints and other data by the year 1999.  It
is the intent of the Legislature in enacting this section to require
the fingerprints of those individuals whose contact with clients of
residential care facilities for the elderly may pose a risk to the
clients' health and safety.
   (a) Before issuing a license to any person or persons to operate
or manage a residential care facility for the elderly, the department
shall secure from an appropriate law enforcement agency a criminal
record to determine whether the applicant or any other person
specified in subdivision (b) has ever been convicted of a crime other
than a minor traffic violation or arrested for any crime specified
in Section 290 of the Penal Code, for violating Section 245 or 273.5,
subdivision (b) of Section 273a or, prior to January 1, 1994,
paragraph (2) of Section 273a of the Penal Code, or for any crime for
which the department cannot grant an exemption if the person was
convicted and the person has been exonerated.  That criminal history
information shall include the full criminal
                 record, if any, of those persons, and subsequent
arrest information pursuant to Section 11105.2 of the Penal Code.
The following shall apply to the criminal record information:
   (1) If the State Department of Social Services finds that the
applicant or any other person specified in subdivision (b) has been
convicted of a crime, other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (f).
   (2) If the State Department of Social Services finds that the
applicant, or any person specified in subdivision (b) is awaiting
trial for a crime other than a minor traffic violation, the State
Department of Social Services shall cease processing the application
until the conclusion of the trial.
   (3) If no criminal record information has been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.
   (4) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license may be revoked, unless
the director grants an exemption pursuant to subdivision (f).
   (5) An applicant and any person specified in subdivision (b) shall
submit a second set of fingerprints to the Department of Justice,
for the purpose of searching the records of the Federal Bureau of
Investigation, in addition to the search required by subdivision (a).
  If an applicant meets all other conditions for licensure, except
receipt of the Federal Bureau of Investigation's criminal history
information for the applicant and persons listed in subdivision (b),
the department may issue a license if the applicant and each person
described by subdivision (b) has signed and submitted a statement
that he or she has never been convicted of a crime in the United
States, other than a traffic infraction as defined in paragraph (1)
of subdivision (a) of Section 42001 of the Vehicle Code.  If, after
licensure, the department determines that the licensee or person
specified in subdivision (b) has a criminal record, the license may
be revoked pursuant to Section 1569.50.  The department may also
suspend the license pending an administrative hearing pursuant to
Sections 1569.50 and 1569.51.
   (b) In addition to the applicant, the provisions of this section
shall apply to criminal convictions of the following persons:
   (1) (A) Adults responsible for administration or direct
supervision of staff.
   (B) Any person, other than a client, residing in the facility.
Residents of unlicensed independent senior housing facilities that
are located in contiguous buildings on the same property as a
residential care facility for the elderly shall be exempt from these
requirements.
   (C) Any person who provides client assistance in dressing,
grooming, bathing, or personal hygiene.  Any nurse assistant or home
health aide meeting the requirements of Section 1338.5 or 1736.6,
respectively, who is not employed, retained, or contracted by the
licensee, and who has been certified or recertified on or after July
1, 1998, shall be deemed to meet the criminal record clearance
requirements of this section.  A certified nurse assistant and
certified home health aide who will be providing client assistance
and who falls under this exemption shall provide one copy of his or
her current certification, prior to providing care, to the
residential care facility for the elderly.  The facility shall
maintain the copy of the certification on file as long as the care is
being provided by the certified nurse assistant or certified home
health aide at the facility.  Nothing in this paragraph restricts the
right of the department to exclude a certified nurse assistant or
certified home health aide from a licensed residential care facility
for the elderly pursuant to Section 1569.58.
   (D) Any staff person, volunteer, or employee who has contact with
the clients.
   (E) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer or other person serving in
a similar capacity.
   (F) Additional officers of the governing body of the applicant or
other persons with a financial interest in the applicant, as
determined necessary by the department by regulation.  The criteria
used in the development of these regulations shall be based on the
person's capability to exercise substantial influence over the
operation of the facility.
   (2) The following persons are exempt from requirements applicable
under paragraph (1):
   (A) A spouse, significant other, or close friend of a client shall
be exempt if this person is visiting the client or provides direct
care and supervision to that client only.
   (B) A volunteer to whom all of the following apply:
   (i) The volunteer is at the facility during normal waking hours.
   (ii) The volunteer is directly supervised by the licensee or a
facility employee with a criminal record clearance or exemption.
   (iii) The volunteer spends no more than 16 hours per week at the
facility.
   (iv) The volunteer does not provide clients with assistance in
dressing, grooming, bathing, or personal hygiene.
   (v) The volunteer is not left alone with clients in care.
   (C) A third-party contractor retained by the facility if the
contractor is not left alone with clients in care.
   (D) A third-party contractor or other business professional
retained by a client and at the facility at the request or by
permission of that client. These individuals shall not be left alone
with other clients.
   (E) Licensed or certified medical professionals are exempt from
fingerprint and criminal background check requirements imposed by
community care licensing.  This exemption shall not apply to a person
who is a community care facility licensee or an employee of the
facility.
   (F) Employees of licensed home health agencies and members of
licensed hospice interdisciplinary teams who have contact with a
resident of a residential care facility at the request of the
resident or resident's legal decisionmaker are exempt from
fingerprint and criminal background check requirements imposed by
community care licensing.  This exemption shall not apply to a person
who is a community care facility licensee or an employee of the
facility.
   (G) Clergy and other spiritual caregivers who are performing
services in common areas of the residential care facility, or who are
advising an individual resident at the request of, or with
permission of, the resident, are exempt from fingerprint and criminal
background check requirements imposed by community care licensing.
This exemption shall not apply to a person who is a community care
facility licensee or an employee of the facility.
   (H) Nothing in this paragraph shall prevent a licensee from
requiring a criminal record clearance of any individual exempt from
the requirements of this section, provided that the individual has
client contact.
   (c) (1) (A) Subsequent to initial licensure, any person required
to be fingerprinted pursuant to subdivision (b) shall, as a condition
to employment, residence, or presence in a residential facility for
the elderly, be fingerprinted and sign a declaration under penalty of
perjury regarding any prior criminal convictions.  The licensee
shall submit these fingerprints, along with a second set of
fingerprints for the purpose of searching the records of the Federal
Bureau of Investigation, to the Department of Justice, or to comply
with paragraph (1) of subdivision (g) prior to the person's
employment, residence, or initial presence in the residential care
facility for the elderly.
   (B) These fingerprints shall be on a fingerprint card provided by
the State Department of Social Services and submitted to the
Department of Justice by the licensee or sent by electronic
transmission in a manner approved by the State Department of Social
Services.  A licensee's failure to submit fingerprints to the
Department of Justice, or to comply with paragraph (1) of subdivision
(g), as required in this section, shall result in the citation of a
deficiency and an immediate assessment of civil penalties in the
amount of one hundred dollars ($100) per violation.  The State
Department of Social Services may assess civil penalties for
continued violations as permitted by Section 1569.49.  The licensee
shall then submit these fingerprints to the State Department of
Social Services for processing.  Documentation of the individual's
clearance or exemption shall be maintained by the licensee and be
available for inspection.  When live-scan technology is operational,
as defined in Section 1522.04, the Department of Justice shall notify
the department, as required by that section, and notify the licensee
by mail within 14 days of electronic transmission of the
fingerprints to the Department of Justice,  if the person has no
criminal record.  A violation of the regulations adopted pursuant to
Section 1522.04 shall result in the citation of a deficiency and an
immediate assessment of civil penalties in the amount of one hundred
dollars ($100) per violation.  The department may assess civil
penalties for continued violations as permitted by Section 1569.49.
   (2) Within 14 calendar days of the receipt of the fingerprints,
the Department of Justice shall notify the State Department of Social
Services of the criminal record information, as provided for in this
subdivision.  If no criminal record information has been recorded,
the Department of Justice shall provide the licensee and the State
Department of Social Services with a statement of that fact within 14
calendar days of receipt of the fingerprints. If new fingerprints
are required for processing, the Department of Justice shall, within
14 calendar days from the date of receipt of the fingerprints, notify
the licensee that the fingerprints were illegible.
   (3) Except for persons specified in paragraph (2) of subdivision
(b), the licensee shall endeavor to ascertain the previous employment
history of persons required to be fingerprinted under this
subdivision.  If the State Department of Social Services determines,
on the basis of the fingerprints submitted to the Department of
Justice, that the person has been convicted of a sex offense against
a minor, an offense specified in Section 243.4, 273a, or 273d,
subdivision (a) or (b) of Section 368 of the Penal Code, or a felony,
the State Department of Social Services shall notify the licensee in
writing within 15 calendar days of the receipt of the notification
from the Department of Justice to act immediately to terminate the
person's employment, remove the person from the residential care
facility for the elderly, or bar the person from entering the
residential care facility for the elderly.  The State Department of
Social Services may subsequently grant an exemption pursuant to
subdivision (f).  If the conviction was for another crime, except a
minor traffic violation, the licensee shall, upon notification by the
State Department of Social Services, act immediately to either (1)
terminate the person's employment, remove the person from the
residential care facility for the elderly, or bar the person from
entering the residential care facility for the elderly or (2) seek an
exemption pursuant to subdivision (f).  The department shall
determine if the person shall be allowed to remain in the facility
until a decision on the exemption is rendered by the department.  A
licensee's failure to comply with the department's prohibition of
employment, contact with clients, or presence in the facility as
required by this paragraph shall be grounds for disciplining the
licensee pursuant to Section 1569.50.
   (4) The department may issue an exemption on its own motion
pursuant to subdivision (f) if the person's criminal history
indicates that the person is of good character based on the age,
seriousness, and frequency of the conviction or convictions.  The
department, in consultation with interested parties, shall develop
regulations to establish the criteria to grant an exemption pursuant
to this paragraph.
   (5) Concurrently with notifying the licensee pursuant to paragraph
(4), the department shall notify the affected individual of his or
her right to seek an exemption pursuant to subdivision (f).  The
individual may seek an exemption only if the licensee terminates the
person's employment or removes the person from the facility after
receiving notice from the department pursuant to paragraph (4).
   (d) (1) For purposes of this section or any other provision of
this chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere.  Any action that the
department is permitted to take following the establishment of a
conviction may be taken when the time for appeal has elapsed, or the
judgment of conviction has been affirmed on appeal or when an order
granting probation is made suspending the imposition of the sentence,
notwithstanding a subsequent order pursuant to the provisions of
Sections 1203.4 and 1203.4a of the Penal Code permitting a person to
withdraw his or her plea of guilty and to enter a plea of not guilty,
or setting aside the verdict of guilty, or dismissing the
accusation, information, or indictment.  For purposes of this section
or any other provision of this chapter, the record of a conviction,
or a copy thereof certified by the clerk of the court or by a judge
of the court in which the conviction occurred, shall be conclusive
evidence of the conviction.  For purposes of this section or any
other provision of this chapter, the arrest disposition report
certified by the Department of Justice or documents admissible in a
criminal action pursuant to Section 969b of the Penal Code shall be
prima facie evidence of the conviction, notwithstanding any other
provision of law prohibiting the admission of these documents in a
civil or administrative action.
   (2) For purposes of this section or any other provision of this
chapter, the department shall consider criminal convictions from
another state or federal court as if the criminal offense was
committed in this state.
   (e) The State Department of Social Services shall not use a record
of arrest to deny, revoke, or terminate any application, license,
employment, or residence unless the department investigates the
incident and secures evidence, whether or not related to the incident
of arrest, that is admissible in an administrative hearing to
establish conduct by the person that may pose a risk to the health
and safety of any person who is or may become a client.  The State
Department of Social Services is authorized to obtain any arrest or
conviction records or reports from any law enforcement agency as
necessary to the performance of its duties to inspect, license, and
investigate community care facilities and individuals associated with
a community care facility.
   (f) (1) After review of the record, the director may grant an
exemption from disqualification for a license as specified in
paragraphs (1) and (4) of subdivision (a), or for employment,
residence, or presence in a residential care facility for the elderly
as specified in paragraphs (4), (5), and (6) of subdivision (c) if
the director has substantial and convincing evidence to support a
reasonable belief that the applicant and the person convicted of the
crime, if other than the applicant, are of such good character as to
justify issuance of the license or special permit or granting an
exemption for purposes of subdivision (c).  However, no exemption
shall be granted pursuant to this subdivision if the conviction was
for an offense specified in Section 220, 243.4, or 264.1, subdivision
(a) of Section 273a or, prior to January 1, 1994, paragraph (1) of
Section 273a, Section 273d, 288, or 289, subdivision (a) of Section
290, or subdivision (a) or (b) of Section 368 of the Penal Code, or
was a conviction of another crime against an individual specified in
subdivision (c) of Section 667.5 of the Penal Code.  The director
shall notify in writing the licensee or the applicant of his or her
decision within 60 days of receipt of all information from the
applicant and other sources determined necessary by the director for
the rendering of a decision pursuant to this subdivision.
   (2) The department shall not prohibit a person from being employed
or having contact with clients in a facility on the basis of a
denied criminal record exemption request or arrest information unless
the department complies with the requirements of Section 1569.58.
   (g) (1) For purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
records clearance, as defined in subdivision (a), from one facility
to another, as long as the criminal record clearance has been
processed through a state licensing district office, and is being
transferred to another state licensing district office.  The request
shall be submitted in writing to the department, and shall include a
copy of the person's driver's license or valid identification card
issued by the Department of Motor Vehicles, or a valid photo
identification issued by another state or the United States
government if the person is not a California resident.  Upon request
of the licensee, who shall enclose a self-addressed stamped envelope
for this purpose, the department shall verify whether the individual
has a clearance that can be transferred.
   (2) The State Department of Social Services shall hold criminal
records clearances in its active files for a minimum of two years
after an employee is no longer employed at a licensed facility in
order for the criminal records clearances to be transferred under
this section.
   (h) If a licensee or facility is required by law to deny
employment or to terminate employment of any employee based on
written notification from the state department that the employee has
a prior criminal conviction or is determined unsuitable for
employment under Section 1569.58, the licensee or facility shall not
incur civil liability or unemployment insurance liability as a result
of that denial or termination.
   (i) Amendments to the provisions of this section made in the 1998
calendar year shall be implemented commencing 60 days after the
effective date of the act amending this section in the 1998 calendar
year, except those provisions for the submission of fingerprints for
searching the records of the Federal Bureau of Investigation, which
shall be implemented commencing on January 1, 1999.
  SEC. 5.  Section 1596.871 of the Health and Safety Code is amended
to read:
   1596.871.  The Legislature recognizes the need to generate timely
and accurate positive fingerprint identification of applicants as a
condition of issuing licenses, permits, or certificates of approval
for persons to operate or provide direct care services in a child
care center or family child care home.  Therefore, the Legislature
supports the use of the fingerprint live-scan technology, as defined
in the long-range plan of the Department of Justice for fully
automating the processing of fingerprints and other data by the year
1999, otherwise known as the California Crime Information
Intelligence System (CAL-CII), to be used for applicant fingerprints.
  It is the intent of the Legislature in enacting this section to
require the fingerprints of those individuals whose contact with
child day care facility clients may pose a risk to the children's
health and safety.
   (a) Before issuing a license or special permit to any person to
operate or manage a day care facility, the department shall secure
from an appropriate law enforcement agency a criminal record to
determine whether the applicant or any other person specified in
subdivision (b) has ever been convicted of a crime other than a minor
traffic violation or arrested for any crime specified in Section 290
of the Penal Code, for violating Section 245 or 273.5, subdivision
(b) of Section 273a or, prior to January 1, 1994, paragraph (2) of
Section 273a of the Penal Code, or for any crime for which the
department cannot grant an exemption if the person was convicted and
the person has not been exonerated.  That criminal history
information shall include the full criminal record, if any, of those
persons, and subsequent arrest information pursuant to Section
11105.2 of the Penal Code.  No fee shall be charged by the Department
of Justice or the department for the fingerprinting of an applicant
who will serve six or fewer children or any family day care applicant
for a license, or for obtaining a criminal record of an applicant
pursuant to this section. The following shall apply to the criminal
record information:
   (1) If the State Department of Social Services finds that the
applicant or any other person specified in subdivision (b) has been
convicted of a crime, other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (f).
   (2) If the State Department of Social Services finds that the
applicant, or any person specified in subdivision (b), is awaiting
trial for a crime other than a minor traffic violation, the State
Department of Social Services shall cease processing the application
until the conclusion of the trial.
   (3) If no criminal record information has been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.
   (4) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license may be revoked, unless
the director grants an exemption pursuant to subdivision (f).
   (5) An applicant and any person specified in subdivision (b) shall
submit a second set of fingerprints to the Department of Justice,
for the purpose of searching the records of the Federal Bureau of
Investigation, in addition to the search required by subdivision (a).
  If an applicant meets all other conditions for licensure, except
receipt of the Federal Bureau of Investigation's criminal history
information for the applicant and persons listed in subdivision (b),
the department may issue a license if the applicant and each person
described by subdivision (b) has signed and submitted a statement
that he or she has never been convicted of a crime in the United
States, other than a traffic infraction as defined in paragraph (1)
of subdivision (a) of Section 42001 of the Vehicle Code.  If, after
licensure, the department determines that the licensee or person
specified in subdivision (b) has a criminal record, the license may
be revoked pursuant to Section 1596.885.  The department may also
suspend the license pending an administrative hearing pursuant to
Section 1596.886.
   (b) (1) In addition to the applicant, this section shall be
applicable to criminal convictions of the following persons:
   (A) Adults responsible for administration or direct supervision of
staff.
   (B) Any person, other than a child, residing in the facility.
   (C) Any person who provides care and supervision to the children.

   (D) Any staff person, volunteer, or employee who has contact with
the children.
   (i) A volunteer providing time-limited specialized services, shall
be exempt from the requirements of this subdivision if this person
is directly supervised by the licensee or a facility employee with a
criminal record clearance or exemption, the volunteer spends no more
than 16 hours per week at the facility, and the volunteer is not left
alone with children in care.
   (ii) A student enrolled or participating at an accredited
educational institution shall be exempt from the requirements of this
subdivision if the student is directly supervised by the licensee or
a facility employee with a criminal record clearance or exemption,
the facility has an agreement with the educational institution
concerning the placement of the student, the student spends no more
than 16 hours per week at the facility, and the student is not left
alone with children in care.
   (iii) A volunteer who is a relative, legal guardian, or foster
parent of a client in the facility shall be exempt from the
requirements of this subdivision.
   (iv) A contracted repair person retained by the facility, if not
left alone with children in care, shall be exempt from the
requirements of this subdivision.
   (E) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer, other person serving in
like capacity, or a person designated by the chief executive officer
as responsible for the operation of the facility, as designated by
the applicant agency.
   (F) If the applicant is a local educational agency, the president
of the governing board, the school district superintendent, or a
person designated to administer the operation of the facility, as
designated by the local educational agency.
   (G) Additional officers of the governing body of the applicant, or
other persons with a financial interest in the applicant, as
determined necessary by the department by regulation.  The criteria
used in the development of these regulations shall be based on the
person's capability to exercise substantial influence over the
operation of the facility.
   (H) This section does not apply to employees of child care and
development programs under contract with the State Department of
Education who have completed a criminal records clearance as part of
an application to the Commission on Teacher Credentialing, and who
possess a current credential or permit issued by the commission,
including employees of child care and development programs that serve
both children subsidized under, and children not subsidized under, a
State Department of Education contract.  The Commission on Teacher
Credentialing shall notify the department upon revocation of a
current credential or permit issued to an employee of a child care
and development program under contract with the State Department of
Education.
   (I) This section does not apply to employees of a child care and
development program operated by a school district, county office of
education, or community college district under contract with the
State Department of Education who have completed a criminal records
clearance as a condition of employment.  The school district, county
office of education, or community college district upon receiving
information that the status of an employee's criminal record
clearance has changed shall submit that information to the
                                department.
   (2) Nothing in this subdivision shall prevent a licensee from
requiring a criminal record clearance of any individuals exempt from
the requirements under this subdivision.
   (c) (1) (A) Subsequent to initial licensure, any person specified
in subdivision (b) and not exempted from fingerprinting shall, as a
condition to employment, residence, or presence in a child day care
facility be fingerprinted and sign a declaration under penalty of
perjury regarding any prior criminal conviction.  The licensee shall
submit these fingerprints to the Department of Justice, along with a
second set of fingerprints for the purpose of searching the records
of the Federal Bureau of Investigation, or to comply with paragraph
(1) of subdivision (h), prior to the person's employment, residence,
or initial presence in the child day care facility.
   (B) These fingerprints shall be on a card provided by the State
Department of Social Services for the purpose of obtaining a
permanent set of fingerprints and submitted to the Department of
Justice by the licensee or sent by electronic transmission in a
manner approved by the State Department of Social Services.  A
licensee's failure to submit fingerprints to the Department of
Justice, or to comply with paragraph (1) of subdivision (h), as
required in this section, shall result in the citation of a
deficiency, and an immediate assessment of civil penalties in the
amount of one hundred dollars ($100) per violation.  The State
Department of Social Services may assess civil penalties for
continued violations permitted by Sections 1596.99 and 1597.62.  The
fingerprints shall then be submitted to the State Department of
Social Services for processing.  Within 14 calendar days of the
receipt of the fingerprints, the Department of Justice shall notify
the State Department of Social Services of the criminal record
information, as provided in this subdivision.  If no criminal record
information has been recorded, the Department of Justice shall
provide the licensee and the State Department of Social Services with
a statement of that fact within 14 calendar days of receipt of the
fingerprints.  If new fingerprints are required for processing, the
Department of Justice shall, within 14 calendar days from the date of
receipt of the fingerprints, notify the licensee that the
fingerprints were illegible.
   (C) Documentation of the individual's clearance or exemption shall
be maintained by the licensee, and shall be available for
inspection.  When live-scan technology is operational, as defined in
Section 1522.04, the Department of Justice shall notify the
department, as required by that section, and notify the licensee by
mail within 14 days of electronic transmission of the fingerprints to
the Department of Justice, if the person has no criminal record.
Any violation of the regulations adopted pursuant to Section 1522.04
shall result in the citation of a deficiency and an immediate
assessment of civil penalties in the amount of one hundred dollars
($100) per violation.  The department may assess civil penalties for
continued violations, as permitted by Sections 1596.99 and 1597.62.
   (2) Except for persons specified in paragraph (2) of subdivision
(b), the licensee shall endeavor to ascertain the previous employment
history of persons required to be fingerprinted under this
subdivision.  If it is determined by the department, on the basis of
fingerprints submitted to the Department of Justice, that the person
has been convicted of a sex offense against a minor, an offense
specified in Section 243.4, 273a, or 273d, subdivision (a) or (b) of
Section 368 of the Penal Code, or a felony, the State Department of
Social Services shall notify the licensee to act immediately to
terminate the person's employment, remove the person from the child
day care facility, or bar the person from entering the child day care
facility.  The department may subsequently grant an exemption
pursuant to subdivision (f).  If the conviction was for another crime
except a minor traffic violation, the licensee shall, upon
notification by the State Department of Social Services, act
immediately to either (1) terminate the person's employment, remove
the person from the child day care facility, or bar the person from
entering the child day care facility; or (2) seek an exemption
pursuant to subdivision (f).  The department shall determine if the
person shall be allowed to remain in the facility until a decision on
the exemption is rendered.  A licensee's failure to comply with the
department's prohibition of employment, contact with clients, or
presence in the facility as required by this paragraph shall be
grounds for disciplining the licensee pursuant to Section 1596.885 or
1596.886.
   (3) The department may issue an exemption on its own motion
pursuant to subdivision (f) if the person's criminal history
indicates that the person is of good character based on the age,
seriousness, and frequency of the conviction or convictions.  The
department, in consultation with interested parties, shall develop
regulations to establish the criteria to grant an exemption pursuant
to this paragraph.
   (4) Concurrently with notifying the licensee pursuant to paragraph
(3), the department shall notify the affected individual of his or
her right to seek an exemption pursuant to subdivision (f).  The
individual may seek an exemption only if the licensee terminates the
person's employment or removes the person from the facility after
receiving notice from the department pursuant to paragraph (3).
   (d) (1) For purposes of this section or any other provision of
this chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere.  Any action which the
department is permitted to take following the establishment of a
conviction may be taken when the time for appeal has elapsed, or the
judgment of conviction has been affirmed on appeal or when an order
granting probation is made suspending the imposition of sentence,
notwithstanding a subsequent order pursuant to Sections 1203.4 and
1203.4a of the Penal Code permitting the person to withdraw his or
her plea of guilty and to enter a plea of not guilty, or setting
aside the verdict of guilty, or dismissing the accusation,
information, or indictment.  For purposes of this section or any
other provision of this chapter, the record of a conviction, or a
copy thereof certified by the clerk of the court or by a judge of the
court in which the conviction occurred, shall be conclusive evidence
of the conviction.  For purposes of this section or any other
provision of this chapter, the arrest disposition report certified by
the Department of Justice, or documents admissible in a criminal
action pursuant to Section 969b of the Penal Code, shall be prima
facie evidence of conviction, notwithstanding any other provision of
law prohibiting the admission of these documents in a civil or
administrative action.
   (2) For purposes of this section or any other provision of this
chapter, the department shall consider criminal convictions from
another state or federal court as if the criminal offense was
committed in this state.
   (e) The State Department of Social Services shall not use a record
of arrest to deny, revoke, or terminate any application, license,
employment, or residence unless the department investigates the
incident and secures evidence, whether or not related to the incident
of arrest, that is admissible in an administrative hearing to
establish conduct by the person that may pose a risk to the health
and safety of any person who is or may become a client.  The State
Department of Social Services is authorized to obtain any arrest or
conviction records or reports from any law enforcement agency as
necessary to the performance of its duties to inspect, license, and
investigate community care facilities and individuals associated with
a community care facility.
   (f) (1) After review of the record, the director may grant an
exemption from disqualification for a license or special permit as
specified in paragraphs (1) and (4) of subdivision (a), or for
employment, residence, or presence in a child day care facility as
specified in paragraphs (3), (4), and (5) of subdivision (c) if the
director has substantial and convincing evidence to support a
reasonable belief that the applicant and the person convicted of the
crime, if other than the applicant, are of good character so as to
justify issuance of the license or special permit or granting an
exemption for purposes of subdivision (c).  However, no exemption
shall be granted pursuant to this subdivision if the conviction was
for an offense specified in Section 220, 243.4, or 264.1, subdivision
(a) of Section 273a or, prior to January 1, 1994, paragraph (1) of
Section 273a, Section 273d, 288, or 289, subdivision (a) of Section
290, or subdivision (a) or (b) of Section 368 of the Penal Code, or
was a conviction of another crime against an individual specified in
subdivision (c) of Section 667.5 of the Penal Code.
   (2) The department shall not prohibit a person from being employed
or having contact with clients in a facility on the basis of a
denied criminal record exemption request or arrest information unless
the department complies with the requirements of Section 1596.8897.

   (g) Upon request of the licensee, who shall enclose a
self-addressed stamped postcard for this purpose, the Department of
Justice shall verify receipt of the fingerprints.
   (h) (1) For the purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
records clearance, as defined in subdivision (a), from one facility
to another, as long as the criminal record clearance has been
processed through a state licensing district office, and is being
transferred to another state licensing district office.  The request
shall be in writing to the department, and shall include a copy of
the person's driver's license or valid identification card issued by
the Department of Motor Vehicles, or a valid photo identification
issued by another state or the United States government if the person
is not a California resident.  Upon request of the licensee, who
shall enclose a self-addressed stamped envelope for this purpose, the
department shall verify whether the individual has a clearance that
can be transferred.
   (2) The State Department of Social Services shall hold criminal
records clearances in its active files for a minimum of two years
after an employee is no longer employed at a licensed facility in
order for the criminal records clearances to be transferred.
   (i) Amendments to this section made in the 1998 calendar year
shall be implemented commencing 60 days after the effective date of
the act amending this section in the 1998 calendar year, except those
provisions for the submission of fingerprints for searching the
records of the Federal Bureau of Investigation, which shall be
implemented commencing January 1, 1999.
  SEC. 6.  Section 361.21 of the Welfare and Institutions Code is
amended to read:
   361.21.  (a) The court shall not order the placement of a minor in
an out-of-state group home, unless the court finds, in its order of
placement, that all of the following conditions have been met:
   (1) The out-of-state group home is licensed or certified for the
placement of minors by an agency of the state in which the minor will
be placed.
   (2) The out-of-state group home meets the requirements of Section
7911.1 of the Family Code.
   (3) In-state facilities or programs have been determined to be
unavailable or inadequate to meet the needs of the minor.
   (b) At least every six months, the court shall review each
placement made pursuant to subdivision (a) in order to determine
compliance with that subdivision.
   (c) A county shall not be entitled to receive or expend any public
funds for the placement of a minor in an out-of-state group home
unless the requirements of subdivisions (a) and (b) are met.
  SEC. 7.  Section 727.1 of the Welfare and Institutions Code is
amended to read:
   727.1.  (a) Unless otherwise authorized by law, the court may not
order the placement of a minor who is adjudged a ward of the court on
the basis that he or she is a person described by either Section 601
or 602 in a private residential facility or program that provides
24-hour supervision, outside of the state, unless the court finds, in
its order of placement, that all of the following conditions are
met:
   (1) In-state facilities or programs have been determined to be
unavailable or inadequate to meet the needs of the minor.
   (2) The out-of-state residential facility or program is licensed
for the placement of minors by an agency of the state or states in
which the minor will be placed or operates under and is inspected
pursuant to standards comparable to those developed by the Board of
Corrections for similar facilities or programs.
   (3) The requirements of Section 7911.1 of the Family Code are met.

   (b) If, upon inspection, the probation officer of the county in
which the minor is adjudged a ward of the court determines that the
out-of-state facility or program is not in compliance with the
standards required under paragraph (2) of subdivision (a) or has an
adverse impact on the health and safety of the child, the probation
officer may temporarily remove the minor from the facility or
program.  The probation officer shall promptly inform the court of
the minor's removal, and shall return the minor to the court for a
hearing to review the suitability of continued out-of-state
placement.  The probation officer shall, within one business day of
removing the child, notify the State Department of Social Services'
Compact Administrator, and, within five working days, submit a
written report of the findings and actions taken.
   (c) The court shall review each of these placements for compliance
with the requirements of subdivision (a) at least once every six
months.
   (d) The county shall not be entitled to receive or expend any
public funds for the placement of a minor in an out-of-state group
home unless the conditions of subdivision (a) and (c) are met.
  SEC. 8.  Section 11466.21 of the Welfare and Institutions Code is
amended to read:
   11466.21.  (a) (1) In accordance with subdivision (b), as a
condition to receive an AFDC-FC rate for a group home program or a
foster family agency program that provides treatment services, the
provider shall arrange to have a financial audit conducted on an
annual basis.
   (2) The scope of the financial audit shall include all of the
programs and activities operated by the provider and shall not be
limited to those funded in whole or in part by the AFDC-FC program.
The financial audits shall include, but not be limited to, an
evaluation of the accounting and control systems of the provider.
   (3) The provider shall have its financial audit made by certified
public accountants or by state-licensed public accountants who have
no direct or indirect relationship with the functions or activities
being audited, or with the provider, its board of directors,
officers, or staff.
   (4) The provider shall have its financial audits made using
generally accepted auditing standards applicable to private entities
organized and operated on a nonprofit basis.
   (5) (A) Each provider shall have the flexibility to define the
calendar months included in its fiscal year.
   (B) A provider may change the definition of its fiscal year.
However, the financial audit conducted following the change shall
cover all of the months since the last audit, even though this may
cover a period that exceeds 12 months.
   (b) (1) Except as provided for in paragraph (3), as a condition to
receive an AFDC-FC rate that becomes effective on or after July 1,
2000, a provider shall submit a copy of its most recent financial
audit as a component of any rate application, including an annual
rate application, an application for a rate for a new program of an
existing or new provider, an application for a change in a program's
rate classification level, and an application for a program change.
   (2) A rate application shall not be considered complete until and
unless the most recent financial audit of the provider is submitted
to the department.
   (3) (A) For the period July 1, 1999, through June 30, 2000, a new
provider that was incorporated on or after October 1, 1997, shall not
be required to submit a copy of a financial audit as a component of
its application for an AFDC-FC rate for a new program.
   (B) Effective July 1, 2000, a new provider that has been
incorporated for fewer than 12 calendar months shall not be required
to submit a copy of a financial audit as a component of its
application for an AFDC-FC rate for a new program.
   (c) The department shall develop regulations establishing a
process for group home and foster family agency providers, with a
total licensed capacity of 12 or fewer persons, to apply for and
receive financial assistance for the conduct of the annual financial
audit.  In recognition of the fact that the costs of a financial
audit will be higher for small providers, relative to their revenues
and expenditures, than they will be for larger providers, financial
assistance shall be provided on a sliding scale basis to offset the
costs of the audit.  An eligible provider may receive up to two
thousand five hundred dollars ($2,500) annually, or one-half of the
actual costs of the financial audit, whichever is less.  The
department shall implement this subdivision through the adoption of
emergency regulations.
  SEC. 9.  Section 4.5 of this bill incorporates amendments to
Section 1569.17 of the Health and Safety Code proposed by both this
bill and SB 286.  It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2000, but
this bill becomes operative first, (2) each bill amends Section
1569.17 of the Health and Safety Code, and (3) this bill is enacted
after SB 286, in which case Section 1569.17 of the Health and Safety
Code, as amended by Section 4 of this bill, shall remain operative
only until the operative date of SB 286, at which time Section 4.5 of
this bill shall become operative.
  SEC. 10.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution for certain
costs that may be incurred by a local agency or school district
because in that regard this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
   However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
  SEC. 11.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to ensure that important changes are made in provisions
relating to the foster care system in California, at the earliest
possible time, it is necessary that this act go into immediate
effect.
